Transformation from an isolated region to a buzzing IT-ITeS

and BFSI destination

Gachibowli, Hyderabad

April 2018Micro Market Overview Report

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Micro Market Overview Report | Gachibowli, Hyderabad 1

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About Micro Market

Gachibowli is a 15 km stretch, that begins from

Nallagandla-Tellapur along Financial District,

Nanakramguda, Kokapet, Narsingi, Raidurg and

stretches up to Manikonda. Recognized today as

a popular IT-ITeS and BFSI hub of Hyderabad,

Gachibowli has emerged as a sought-after

destination for commercial office spaces as well

as residential developments. Gachibowli falls in

the western periphery of Hyderabad and was one

of the far-flung regions of the city, where

development was minimal and residential activity

was almost negligible. However, Gachibowli has

witnessed a rapid transformation in terms of

commercial and residential real estate spaces due

to presence of major IT-ITeS companies.

Gachibowli is 6 km from HITEC city and has

presence of companies such as ICICI, CMC,

Franklin Templeton, UBS, Cognizant, IBM,

Microsoft, Infosys and many more. Gachibowli

has emerged as a top employment destination of

Hyderabad and attracts working professionals

from various parts of India. These commercial

office developments have attracted residential

developers to come up with projects in the

nearby micro markets and now the region is

booming with massive real estate activity.

Despite large residential and commercial real

estate activity, the retail activity is yet to pick up in

this region and the nearest mall (Inorbit) is

located at a distance of 6 km. However, to

facilitate education needs of the residents, top-

rated education institutes such as ISB, University

of Hyderabad, IIIT and National Institute of

Tourism and Hospitality Management are present

in Gachibowli.

Gachibowli recognized today as a

popular IT-ITeS and BFSI hub of

Hyderabad

Connectivity

Located on the western flank of the city,

Gachibowli enjoys excellent connectivity to other

parts of Hyderabad.

Ÿ Gachibowli has easy accessibility to the Outer

ring road (ORR) via Old Mumbai Highway,

Pullela Gopichand Academy road and ISB road

also.

Ÿ The micro market also provides smooth access

to Rajiv Gandhi International Airport

Shamshabad, HITEC city and Mehdipatnam.

Gachibowli is well-connected to the RGI airport

(located 32 km away) via ORR.

Ÿ The nearest MMTS railway station is Lingampally,

located 7 km away from Gachibowli and HITEC

city railway station at a distance of 9 km.

Ÿ Phase 2 of L&T Hyderabad metro rail Metro Rail:

(HMR) is planned to come between Raidurg –

Gachibowli – Shamshabad Airport (28 km).

Road

Rail

Airport

2

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Micro Market Overview Report | Gachibowli, Hyderabad

Gachibowli enjoys excellent connectivity to other parts of Hyderabad.

Major Growth Drivers

Ÿ Proximity to ORR which enhances the

connectivity and provides easy access to key

parts of the city.

Ÿ T h e p ro p o s e d R a i d u rg - G a c h i b ow l i -

Shamshabad metro is expected to trigger

commercial real estate activity under transit

oriented development policy with L&T.

Ÿ Gachibowli has a huge presence of sports

infrastructure - GMC Balayogi Athletic Stadium,

Indoor Stadium, Aquatic complex and New

Rajiv Gandhi International Cricket Stadium.

Ÿ Raheja Mindspace is in proximity to Gachibowli

and has the presence of many global IT-ITeS

firms spread across 21 buildings and 10.2 msf of

office space. This complex creates massive

employment opportunities and has triggered

residential activity.

Ÿ Saturation of Madhapur and new projects

coming up in Tellapur, Narsingi, Manikonda,

Gopanapally, Indira Nagar and Telecom Nagar

of Gachibowli propelled residential demand in

this locality.

Ÿ Gachibowli has the advantage of strong rental

yield and high capital value appreciation which

also makes it a sought-after residential

destination of Hyderabad.

Ÿ Gachibowli is primarily an end-user driven

locality with majority of the home buyers

working in the nearby areas. With booming IT-

ITeS developments in India, the housing

demand is likely to rise further.

Gachibowli has the advantage of

strong rental yield and high capital value appreciation

Gachibowli

DLF Cyber City

Nehru Outer Ring Road

IIIT Hyderabad

Financial District

WaveRock SEZ

Raheja Mindspace IT park

Wells Forgo center

Divyasree NSL Orion

Inorbit

ISB

Wipro Circle

+CARE

Hospital

Location

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Micro Market Overview Report | Gachibowli, Hyderabad

Shopping Mall

Educational Institute

Prominent location

Business Park

Outer Ring Road

Main Road

Hospital+

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Residential Market Assessment

Ÿ Over the last five years, Gachibowli has added around 10,900 units. Around 32% of the supply was added in 2016 itself, indicating the recency of residential developments.

Ÿ Working professionals from nearby IT-ITeS and BFSI companies find it convenient to reside at Gachibowli. As the region primarily caters to the requirements of junior-to-mid level employees, 66% of the supply came in the mid range of INR 40-80 lakh price bracket.

Ÿ The presence of significant unsold inventory (5,500 units as of Q4-2017) led to the decline in supply during the last year, compelling the developers to keep a check on the new launches and focus on project execution.

Ÿ About 33% units (around 3,600) of the total supply since 2013, are in ready-to-move-in stages. This indicates that the region possesses a good execution track record.

Ÿ Around 48% (5,200) of the total supply since 2013, is likely to complete in the next 1 - 2 years and around 12% (around 1,400 units) are likely to complete within a year. Hence, nearly 6,500 units (~60%) of the total supply will be added in less than two years.

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New Launch Supply Age of Inventory (Launches between 2013 to 2017)

Ready to Move-in < 1 Year 1-2 Year 2-3 Years >3 Years

Micro Market Overview Report | Gachibowli, Hyderabad

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2013

2014

2015

2016

2017

6% 1%

33%

12%

48%

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Residential Market Assessment

Micro Market Overview Report | Gachibowli, Hyderabad

New Supply (In Units) Price (INR.sqft)

INR

/ s

qft

.

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Q1-

2015

Q2-

2015

Q3-

2015

Q4-

2015

Q1-

2016

Q2-

2016

Q3-

2016

Q4-

2016

Q1-

2017

Q2-

2017

Q3-

2017

Q4-

2017

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Nu

mb

er

of

Un

its

Ÿ The property prices in Gachibowli of Hyderabad have risen linearly during the past two years with the average price as of Q4-2017 being INR 4,600/sqft.

Ÿ Despite the low new launches during the last years, prices have appreciated by around 7% during the past

12 months . Wi th r i s ing employment opportunities in the region and improving physical infrastructure, buyers are preferring Gachibowli and surrounding micro markets as their residential destinations.

Micro Market Price Movement wrt Supply

Gachibowli

average price as

of Q4 2017 is

around INR

4,600/sft.

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Outlook

Ÿ Gachibowli has emerged as one of the most

preferred residential destination in Hyderabad. The

location possesses excellent connectivity through

ORR and upcoming infrastructure upgrades such as

Raidurg-Gachibowli-Shamshabad metro line will

help improve connectivity between Airport, Fab city,

Tolichowki, Manikonda and Raidurg IT offices.

Furthermore, Strategic Road Development Plan

(SRDP) package IV, from state government is

executing a multiple underpass project from

Biodiversity via Mindspace to Madhapur to ease traffic

congest at peak hours. The presence of several

corporate offices in the vicinity and availability of

residential developments at competitive rates

encourages home buyers to look for properties in

Gachibowli. With rampant real estate and

infrastructure developments, the future of Gachibowli

certainly seems bright.

Micro Market Overview Report | Gachibowli, Hyderabad

New launches

likely to improve

upon full-fledged

implementation

of RERA

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